In this article you get to know insight about Vrundavan Plantation Limited IPO Details. Incorporated in 1997, Vrundavan Plantation is a company with a rich history in the nursery business. The core focus of the company encompasses Landscape Development, Horticulture/Plantation/Landscape maintenance Works, Irrigation works, and Nursery Business.
Vrundavan Plantation has a noble and visionary mission at its heart – to protect, restore, and enhance India’s forest cover while actively responding to the global challenge of climate change. The company is dedicated to managing a substantial 10 million hectares of both forest and non-forest land, with the ultimate goal of expanding the forested areas. This initiative not only contributes to greening India but also has a positive impact on the global environment.
The competitive strengths that set Vrundavan Plantation apart include:
Well-Diversified and Specialized Service Offerings: Vrundavan Plantation stands out in the field due to its diverse portfolio of services. Their expertise spans Landscape Development, Horticulture, Plantation, Landscape Maintenance, and Irrigation works. This versatility enables the company to meet a wide range of client needs.
Organizational Stability and Strong Management Competence: With nearly three decades of experience since its inception, the company boasts remarkable organizational stability. This longevity reflects a well-established foundation for growth. Moreover, the company is led by a highly competent management team, well-equipped to navigate the challenges and opportunities in the industry.
Strong Client Relationships: Vrundavan Plantation prides itself on its enduring relationships with clients. The trust and rapport built over the years are a testament to the quality and reliability of their services. This strong bond with existing clients not only secures ongoing business but also opens doors to new opportunities through word-of-mouth referrals.
Objects of the Issue
Repayment of Working Capital and Unsecured Loan:
This purpose typically involves using the funds raised to settle any outstanding working capital debts and unsecured loans. Working capital loans are essential for day-to-day operations, such as paying salaries, purchasing inventory, and covering operational expenses. Repaying these loans can free up the company’s cash flows and reduce financial costs, improving overall financial stability.
Working Capital Requirement:
Working capital is the lifeline of any business, ensuring smooth operations. In some cases, companies may raise funds to bolster their working capital. This can be crucial for expanding operations, taking advantage of growth opportunities, or weathering economic downturns. Adequate working capital ensures a company can meet its short-term obligations and seize market opportunities.
General Corporate Purpose:
“General corporate purpose” is a broad category that covers various operational needs, expansion plans, or strategic initiatives that don’t fit into specific categories. It might involve investing in research and development, acquiring new technology, expanding into new markets, or simply bolstering the company’s cash reserves for future opportunities. This category offers flexibility in allocating funds as needed to support the company’s overall objectives.
Meeting Public Issue Expenses:
When a company goes public through an IPO, there are substantial expenses associated with the offering. These expenses include underwriting fees, legal and regulatory compliance costs, marketing and promotional expenses, and administrative costs related to the IPO process. Raising funds to cover these expenses ensures a successful transition to a publicly traded company without burdening existing resources.
Vrundavan Plantation Limited IPO Details
| IPO Date | October 30, 2023 to November 1, 2023 |
| Face Value | ₹10 per share |
| Price | ₹108 per share |
| Lot Size | 1200 Shares |
| Total Issue Size | 1,416,000 shares (aggregating up to ₹15.29 Cr) |
| Fresh Issue | 1,416,000 shares (aggregating up to ₹15.29 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing | BSE SME |
| Share holding pre issue | 3,916,728 |
| Share holding post issue | 5,332,728 |
| Market Maker portion | 72,000 shares |
Vrundavan Plantation Limited IPO Reservation
The allocation of shares in an IPO or public offering can be structured in various ways, and the statement you provided appears to specify how the shares are divided between different types of investors. Let’s break it down:
Retail Shares Offered (50% of the Net Issue):
This means that 50% of the shares issued in the offering are specifically reserved for retail investors. Retail investors are typically individual or small-scale investors who are not part of institutional or professional investment groups. This allocation is often seen as a way to ensure that individual investors have a fair opportunity to participate in the IPO.
Other Shares Offered (50% of the Net Issue):
The remaining 50% of the shares issued in the offering are available for other types of investors. These may include institutional investors, high-net-worth individuals, or other categories of investors. The term “Other Shares Offered” essentially designates that this portion is open to a broader range of investors beyond the retail category.
The specific allocation between retail and other shares can vary based on the company’s strategy and the regulatory requirements of the stock exchange where the offering is taking place. Such an allocation ensures a balance between individual and institutional participation in the IPO, which can be an important consideration for the company and its underwriters.
Vrundavan Plantation Limited IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1200 | ₹129,600 |
| Retail (Max) | 1 | 1200 | ₹129,600 |
| HNI (Min) | 2 | 2,400 | ₹259,200 |
Vrundavan Plantation Limited IPO Promoter Holding
Share Holding Pre Issue (85.29%):
This figure indicates that before the new shares were issued, Upendra Tiwari, the company’s promoter, held approximately 85.29% of the total shares in the company. This is a significant majority stake, suggesting that Upendra Tiwari had substantial ownership and control of the company.
Share Holding Post Issue (62.65%):
After the issuance of new shares, Upendra Tiwari’s shareholding has decreased to approximately 62.65%. This means that some of the newly issued shares were likely sold to other investors or entities, which diluted Upendra Tiwari’s ownership stake in the company. The decrease in ownership post-issue may be due to the need for additional capital, complying with regulatory requirements, or other strategic reasons.
It’s important to note that such changes in shareholding are common in the context of an IPO or other capital-raising events, as they involve selling shares to the public or other investors to raise funds for the company’s growth and operations. This dilution typically occurs when the company issues new shares to accommodate the new investors.
Vrundavan Plantation Limited IPO Tentative Dates
| IPO Open Date | Monday, October 30, 2023 |
| IPO Close Date | Wednesday, November 1, 2023 |
| Basis of Allotment | Monday, November 6, 2023 |
| Initiation of Refunds | Tuesday, November 7, 2023 |
| Credit of Shares to Demat | Wednesday, November 8, 2023 |
| Listing Date | Thursday, November 9, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 1, 2023 |
Vrundavan Plantation Limited IPO Registrar
Kfin Technologies Limited
Phone Numbers:
+91 40 6716 2222
+91 40 7961 1000
Email Address: vpl.ipo@kfintech.com
Website: Kfin Technologies Limited – IPO Status
You can reach out to them through the 0-phone numbers or email address for inquiries, assistance, or any specific information you might need regarding their services, including IPO-related queries or status updates.
FAQs
What is the core focus of Vrundavan Plantation Limited’s business?
Vrundavan Plantation Limited’s core focus includes Landscape Development, Horticulture/Plantation/Landscape maintenance Works, Irrigation works, and Nursery Business.
What is Vrundavan Plantation’s mission and environmental initiative?
Vrundavan Plantation’s mission is to protect, restore, and enhance India’s forest cover while actively responding to the global challenge of climate change. The company aims to manage a substantial 10 million hectares of both forest and non-forest land to expand forested areas, contributing to greening India and the global environment.
What are some of the competitive strengths of Vrundavan Plantation Limited?
Vrundavan Plantation’s competitive strengths include well-diversified and specialized service offerings, organizational stability, strong management competence, and strong client relationships.
What are the primary purposes for raising funds through the IPO?
The purposes of raising funds through the IPO include:
Repayment of Working Capital and Unsecured Loan
Meeting Working Capital Requirements
General Corporate Purpose
Meeting Public Issue Expenses
What is the face value of Vrundavan Plantation Limited shares?
The face value of Vrundavan Plantation Limited shares is ₹10 per share.
When is the Vrundavan Plantation Limited IPO scheduled to take place?
The Vrundavan Plantation Limited IPO is scheduled to be open for subscription from October 30, 2023, to November 1, 2023.
What is the allocation for different categories of investors in the IPO?
The allocation of shares in the IPO includes:
Retail Shares Offered (50% of the Net Issue)
Other Shares Offered (50% of the Net Issue)
What is the promoter holding of Vrundavan Plantation Limited before and after the IPO?
The promoter holding is 85.29% before the IPO, and it decreases to 62.65% after the IPO, indicating a dilution of the promoter’s ownership stake.
What is the lot size for the Vrundavan Plantation Limited IPO?
The lot size for the Vrundavan Plantation Limited IPO is 1200 shares.
What are the tentative dates for the Vrundavan Plantation Limited IPO process?
The IPO opens on Monday, October 30, 2023, and closes on Wednesday, November 1, 2023. The listing date is Thursday, November 9, 2023.